When Nitrogen Media was acquired by General Electric's NBC Universal unit, Nitrogen's Vice President of Finance, Babs

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When Nitrogen Media was acquired by General Electric's NBC Universal unit, Nitrogen's Vice President of Finance, Babs Grogan, was terminated as a Nitrogen employee, but hired by NBCU as an outside consultant. The term of Grogan's contract was three months, and her engagement with NBCU required her to assess business opportunities presented to NBCU, such as the financial value of newly created television shows. Grogan represented to NBCU that she had an MBA degree in finance and six years of experience in financial analysis. In fact, Grogan had falsified her academic record and possessed only an undergraduate degree in political science. In addition, she had no experience as a financial analyst, having delegated such work to coworkers for the past six years, although she took credit for their work. When NBCU asked Grogan to value the new TV show Car Shop, she delegated the task in part to a new MBA graduate, Roger Harvey, who was recently hired by NBCU and had virtually no on-the-job experience. As a result, Grogan and Harvey failed to perform a reasonable investigation into the facts regarding the TV show's value and to use appropriate valuations tools. Did Grogan and Harvey breach their fiduciary duty?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-0071317658

15th edition

Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt

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